Midwest Cities Lead U.S. Home Price Increases

Homeownership remains a crucial investment, but rising prices and high mortgage rates are impacting affordability across the U.S., where the typical home value reached $357,377 in February, a 2.1% increase from the previous year. Despite a nationwide cooling in buyer demand, certain regions, especially in the Midwest, like Milwaukee, Detroit, and Cleveland, are seeing significant home price surges due to competitive markets and low inventory. Milwaukee experienced a notable 20% year-over-year price increase, while Detroit saw a 12.5% jump, and Cleveland 10%, according to Redfin data. The constrained inventory has led to intense competition, with buyers often foregoing usual contingencies for inspections and appraisals. Meanwhile, cities like Birmingham-Hoover and Auburn-Opelika in Alabama also show substantial price increases, fueled by limited supply and heightened demand. Despite some regional price stagnation or declines, the overall trend highlights a challenging market for buyers across the country.